What is HSA Health Savings Account? All You Need to Know

If you're looking for a way to save money on health expenses while also reducing your taxable income, then a Health Savings Account (HSA) may be the answer for you. An HSA is a type of savings account that allows individuals to contribute pre-tax money to be used for qualified medical expenses.

Here are some key points about HSA to help you understand it better:

• An HSA must be paired with a High Deductible Health Plan (HDHP).
• Contributions to an HSA are tax-deductible.
• Money in an HSA can be invested and grow tax-free.
• Withdrawals for qualified medical expenses are tax-free.
• Any unused funds roll over year to year, unlike Flexible Spending Accounts (FSAs).

Overall, an HSA provides a tax-advantaged way to save for current and future medical expenses while also giving you more control over your healthcare spending. It's like having a personal healthcare fund that can help you manage unexpected medical costs or save for retirement health expenses.

An HSA is not just a way to save money; it empowers you to take control of your healthcare expenses and future. With pre-tax contributions, you can effectively lower your taxable income while planning for both current medical needs and future healthcare costs.